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Quantia issues its own token to pay victims of FTX crash

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Key facts:
  • Quantia suspended its withdrawals after being affected by the fall of FTX.

  • The company will give a token to its users and promises to buy it back for USDT 1 in a 3-year process.

Customers of the bitcoin (BTC) and cryptocurrency exchange Quantia do not yet have access to their funds. This company, run by Argentine Miguel Schweizer, had exposure to the recently failed FTX exchange.

To compensate its clients, Quantia will issue its own tokenreferred to as QIA. This was announced on November 24 in a press release accessed by CryptoNews.

“Instead of reflecting the loss on each customer’s account, the affected balance will be converted into a token issued by Quantia,” the company explains and adds that this QIA token “will be repurchased from the platform at a face value of USDT 1.00 at a future date.”

According to the same statement, the token repurchase will begin in 2023 and will be a three-year process. During this period, “a secondary market will be opened to exchange these tokens for USDT.” In that secondary market, the price of the QIA will be vol.átil.

The company’s press release does not specify where they will get the resources needed to make the buybacks or whether QIA will have any backing (other than the promise of buybacks). CryptoNews sent these questions to Quantia’s representatives and the text will be updated if there are any answers.

A few hours ago, Quantia released a new statement explaining how the tokens will be distributed. The snapshot of each user’s holdings is taken on November 7, 2022 at 23:59:59 (UTC). Between Nov. 12 and Nov. 16, each customer will receive as many QIAs as the dollar equivalents they are affected by.

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As a reminder, as reported by the exchange itself, the frozen funds in FTX amount to 35 percent of its holdings. Quantia cryptocurrency withdrawals will only begin to be enabled in 2023. The company states that by that time “the liquidity Quantia has in place will begin to return.” For the time being, the company suggests that “no deposits be made until all services are normalized.”

FTX also issued its own token and considered it valuable.

The method chosen by Quantia to compensate aggrieved customers (the issuance of its own token) is surprising considering the history of the FTX Debacle. As reported by this news portal, FTX has issued the FTT token (whose only function was to pay commissions within the exchange).

This token, of little real use, was used by the company led by Sam Bankman-Fried as collateral for loans. When this came to light, the FTT price collapse., The loan collaterals were liquidated and FTX went into crisis. from which it was unable to emerge.

token price ftt.
The price of the FTT, until its recent drop, has been relatively stable in the midst of the cryptocurrency winter. Source: CoinMarketCap.

As can be seen in the graph above, despite its lack of utility, the ITF experienced a significant price increase in 2021 and remained relatively stable in 2022, in the midst of the crypto-winter.

The movement of the press around FTX has resulted in. many considered its shitcoin As a good investment. In any case, there are several facts that show that issuing your own money (such as a token) to cover debts can end badly.

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